We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Oil & Gas Exploration & Production Co.'s

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ed Ajootian who wrote (75)7/1/2003 10:35:51 AM
From: DELT1970  Read Replies (1) of 112
Unit Corp is paying a 34% premium for PetroCorp, its Tulsa neighbor. Unit drills for clients (#5 land based driller in the US) and its own portfolio. Petro had already hi-graded its portfolio by selling Alabama and Canadian assets.

Unit Corp. (NYSE:UNT - News) , in a move to boost its presence in the oil and gas exploration sector, Tuesday said it agreed to acquire rival energy concern PetroCorp Inc. (AMEX:PEX - News) for $190 million in cash and stock.

PetroCorp, based in Tulsa, Okla., explores and develops oil and natural gas properties primarily in Texas and Oklahoma. Unit Corp., which is also based in Tulsa, is involved in oil and gas exploration, production and contract drilling.

The proposed deal consists of two million shares of Unit Corp., with the remainder in cash. Unit Corp. expects the deal to immediately add to earnings and cash flow per share.

The acquisition is subject to conditions, including approval of PetroCorp shareholders.

Monday, shares of PetroCorp closed at $11.15 on the American Stock Exchange, and Unit Corp.'s shares closed at $20.91 on the New York Stock Exchange (News - Websites).

Unit Corp. said about $101 million of the purchase price will be allocated for working capital, $78 million to proved reserves and the remaining $11 million to undeveloped leasehold and partnership interest.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext